With a population of more than 1.2 billion, India is the world’s largest democracy. Over the past decade, the country’s integration into the global economy has been accompanied by economic growth. India has now emerged as a global player.
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This assessment of India's
compliance with the International Association of Insurance
Supervisors (IAIS) Insurance Core Principles (ICP) was
carried out as part of the... Show More + 2011 Financial Sector Assessment
Program (FSAP). Although this is the second FSAP for India,
this is the first external assessment of India's
compliance with the ICPs. The Insurance Regulatory and
Development Authority (IRDA) have principal responsibility
for insurance regulation and supervision in India, although
the central government also has some reserve supervisory
powers. This assessment is based upon information made
available to the assessor in preparation for and during the
June 2011 FSAP mission. The assessment has also been
informed by discussions with regulators and market
participants. The assessment employs the 2003 version of the
IAIS insurance core principles and methodology and is based
on the essential criteria (EC) listed in that document. Show Less -

An assessment of the level of
implementation of the IOSCO principles in the Indian
securities market was conducted from June 15 to July 1, 2011
as part of the Financial... Show More + Sector Assessment Program (FSAP) by
Ana Carvajal, Monetary and capital markets department. An
initial IOSCO assessment was conducted in 2000. Since then
significant changes have taken place in the Indian market,
in terms of market development, upgrading of market
infrastructure and of the regulatory framework. The IOSCO
methodology requires that assessors not only look at the
legal and regulatory framework in place, but at how it has
been implemented in practice. The assessor relied on: (i) a
self-assessment developed by Securities Board Exchange of
India (SEBI); (ii) the review of relevant laws, and other
relevant documents provided by the authorities including
annual reports; (iii) meetings with the Chairman of SEBI and
other members of the Board, staff of SEBI as well as the
RBI, and other public authorities, in particular
representatives of the Ministry of Finance (MoF) and the
Ministry of Corporate Affairs (MCA); as well as (iv)
meetings with market participants, including issuers,
brokers, merchant bankers, fund managers, stock exchanges,
external auditors, credit rating agencies and law firms. Show Less -

The Reserve Bank of India (RBI) is to be
commended for its tightly controlled regulatory and
supervisory regime, consisting of higher than minimum
capital requirements,... Show More + frequent, hands-on and comprehensive
onsite inspections, a conservative liquidity risk policy and
restrictions on banks' capacity to take on more
volatile exposures. The Indian banking system remained
largely stable during the global financial crisis. Since
then, the government of India and RBI has taken additional
measures to enhance the soundness and resilience of the
banking system, such as the establishment of a Financial
Stability and Development Council (FSDC), the implementation
of a countercyclical provisioning regime, and the
development of a roadmap for the introduction of a holding
company structure. Show Less -

The securities and derivatives clearing
and settlement systems in India are organized around
different types of products, which are (1) government
securities, money... Show More + market instruments and forex instruments;
(2) corporate securities and financial derivatives; and (3)
commodity derivatives. The scope of this assessment is
limited to the clearing and settlement systems for the first
two sets of products. The different sets are subject to
different legal frameworks, different regulatory
arrangements and the clearing and settlement systems are
operated by different entities. The different securities and
derivatives clearing and settlement systems handle a large
number of transactions and are as such of systemic
importance. Volumes in the derivatives segments increased
strongly during the last years. Given the growth and volumes
of the commodity derivatives market it is recommended that a
detailed self-assessment by the Forwards Market Commission
(FMC) and/or an independent assessment of the commodity
derivatives clearing and settlement systems be considered in
the immediate future. Show Less -